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Context of 'February 7, 2008: Debts of Ailing British Bank Added to Government Accounts due to Bailout'

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Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office of US Attorneys provides a copy of a government-owned version of PROMIS to Bob Bussey of the Colorado District Attorneys’ Council. The version is a pilot one for Prime computers and is provided at the request of the department’s PROMIS project manager, Madison “Brick” Brewer. Rugh will later discuss the availability of other government-owned versions of PROMIS with Bussey and will provide him with a version for DEC computers early next year. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, US Department of Justice, Bob Bussey

Timeline Tags: Inslaw and PROMIS

An official in the Massachusetts State government asks a Justice Department official about the availability of PROMIS software from sources other than Inslaw, the company that created it. This follows a demonstration of PROMIS by Inslaw at the Boston US Attorneys office to a group of people from the State of Massachusetts. The Massachusetts request is passed on to Jack Rugh of the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys. Rugh replies that some government-owned versions of the software are available, but there is currently a dispute with Inslaw over ownership of an enhanced version of the software. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Office of Management Information Systems Support, Jack Rugh, US Department of Justice, Executive Office for US Attorneys (DOJ)

Timeline Tags: Inslaw and PROMIS

Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys discusses the availability of a government-owned pilot version of PROMIS software, as well as an enhanced version, with Don Manson of the Bureau of Justice Statistics on a number of occasions. According to a later memo drafted by Rugh, Manson is “particularly interested in providing a copy of our enhanced software to the US Virgin Islands.” [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Executive Office for US Attorneys (DOJ), Don Manson, Office of Management Information Systems Support, Bureau of Justice Statistics, Jack Rugh, US Department of Justice

Timeline Tags: Inslaw and PROMIS

Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, drafts a memo summarizing occasions on which versions of PROMIS software have been provided to organizations other than US Attorneys’ offices by the department or such provision has been discussed. The memo is drafted in response to a request by PROMIS project manager Madison “Brick” Brewer, who asked Rugh about any discussions he may have had about such provision a week earlier. The memo lists various occasions on which versions of PROMIS were provided to entities outside the Justice Department (see Early 1982,Before April 22, 1983, and Before April 22, 1983). It also documents discussions Rugh has had about providing the software to other entities (see Early 1982, Between Early 1982 and April 22, 1983, Before April 22, 1983, and Before April 22, 1983). [US Congress, 9/10/1992]

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, C. Madison “Brick” Brewer, US Department of Justice

Timeline Tags: Inslaw and PROMIS

Mervyn King, governor of the Bank of England, is first alerted to the problems at the troubled British mortgage giant Northern Rock. [Daily Telegraph, 2/26/2008] In a phone call with officials at the Financial Services Authority (FSA) and the Treasury, he is told about the potential impact of the global credit crunch on Northern Rock’s business. [BBC, 8/5/2008]

Entity Tags: Her Majesty’s Treasury, Financial Services Authority, Mervyn King, Northern Rock plc, Bank of England

Timeline Tags: Global Economic Crises

Matt Ridley, a former chairman of the troubled British mortgage giant Northern Rock, asks Governor of the Bank of England Mervyn King about possible support to help Northern Rock overcome a difficult period. In addition, Ridley starts to look for a buyer for the distressed bank. [Daily Telegraph, 2/26/2008]

Entity Tags: Bank of England, Mervyn King, Matthew Ridley

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling is informed of “quite substantial problems” at the troubled British mortgage giant Northern Rock. The notification comes from Sir Callum McCarthy, chairman of the Financial Services Authority. [Daily Telegraph, 2/26/2008]

Entity Tags: Alistair Darling, Financial Services Authority, Callum McCarthy

Timeline Tags: Global Economic Crises

News of the financial difficulties of troubled British mortgage giant Northern Rock breaks in the British media. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] The BBC reports that Northern Rock’s situation is so bad that it has asked for and been granted emergency financial support from the Bank of England, in the latter’s role as lender of last resort. BBC business editor Robert Peston says Northern Rock is not in danger of going bust and there is no reason for its customers to panic. However, he adds that “the fact it has had to go cap in hand to the Bank is the most tangible sign that the crisis in financial markets is spilling over into businesses that touch most of our lives.” [BBC, 9/13/2007]

Entity Tags: Robert Peston, Northern Rock plc

Timeline Tags: Global Economic Crises

Following a report that troubled British mortgage giant Northern Rock has asked the Bank of England for emergency funding (see September 13, 2007), a run on the bank begins. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] Northern Rock issues a statement confirming the emergency funding and blaming “extreme conditions” on financial markets. The Bank, the British Treasury, and the Financial Services Authority say they believe Northern Rock is solvent and that the standby funding facility will enable it to “fund its operations during the current period of turbulence in financial markets.” However, this does not reassure savers. The share price plunges 32 percent and depositors try to withdraw their savings. Queues form outside a number of branches, the bank’s website collapses, and its phone lines are jammed. Under current British legislation, savings are only protected up to £33,000 ($66,000). [BBC, 8/5/2008]

Entity Tags: Her Majesty’s Treasury, Financial Services Authority, Northern Rock plc, Bank of England

Timeline Tags: Global Economic Crises

The Bank of England tries to find a buyer for the troubled British mortgage lender Northern Rock. It holds talks with Lloyds TSB, another large British bank, about possibly buying Northern Rock, but according to reports, by September 17 these discussions founder. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Her Majesty’s Treasury, Alistair Darling, Lloyds TSB Group

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling intervenes in the crisis surrounding the troubled British mortgage giant Northern Rock. A run on the bank began three days ago (see September 14, 2007) and shows no sign of abating, as there are still queues outside a number of branches. Amid a further slide in the company’s share price and fears the run will undermine confidence in the whole banking system, Darling issues a statement saying the Treasury will guarantee all deposits held by Northern Rock. He says savers will not lose a penny and that his action is motivated by the “importance I place on maintaining a stable banking system.” The move appears to work and the queues outside branches will subside the next day. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008]

Entity Tags: Alistair Darling, Her Majesty’s Treasury, Northern Rock plc

Timeline Tags: Global Economic Crises

The British Treasury agrees to protect 100 percent of new savings deposited with distressed mortgage giant Northern Rock after September 19. The Treasury had issued a similar guarantee three weeks ago (see September 17, 2007), but that had only covered deposits made up to September 19. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Her Majesty’s Treasury

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling tells the Financial Times that he is planning to give the Financial Services Authority (FSA) more power to deal with failing banks to avoid another crisis like the one that has engulfed Northern Rock (see September 14, 2007). He proposes giving the FSA the power to seize and protect customers’ cash if a bank gets into difficulties. [BBC, 8/5/2008]

Entity Tags: Alistair Darling, Her Majesty’s Treasury, Financial Services Authority

Timeline Tags: Global Economic Crises

Troubled British mortgage giant Northern Rock agrees to sell £2.2 billion (about $4.4 billion) of its mortgage assets to US investment bank JP Morgan. The assets represent about 2 percent of its mortgage portfolio and the price represents a 2.25 percent premium on the assets’ value. Northern Rock says it will use the funds to pay back some of the £25 billion ($50 billion) in emergency loans it has been given by the Bank of England to help it through the financial crisis. [BBC, 8/5/2008]

Entity Tags: JP Morgan Chase, Northern Rock plc

Timeline Tags: Global Economic Crises

The British Treasury signs Ron Sandler, an experienced banker, to head ailing mortgage giant Northern Rock in the event of its nationalization, according to media reports. [Daily Telegraph, 2/26/2008] Commercial companies are currently finalizing bids in an attempt to keep the bank private, but it will be nationalized the next month and Sandler will be appointed to run it. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Her Majesty’s Treasury, Ron Sandler

Timeline Tags: Global Economic Crises

British Prime Minister Gordon Brown confirms that talks are taking place to secure a private sale of ailing mortgage bank Northern Rock. However, he also says he has not ruled out the possibility of nationalizing the bank. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Gordon Brown

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling announces a plan to sell government-guaranteed bonds worth about £25 billion ($50 billion) to help the sale of stricken mortgage giant Northern Rock to a private investor. The proceeds from the sale of the bonds would be used to pay off emergency loans the bank has taken out from the Bank of England. The British treasury thinks the bonds would speed up a private sale of the troubled lender. Although Northern Rock shares rise by about 42 percent on the news, the bank will be nationalized the next month and the bonds will not be issued. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008]

Entity Tags: Alistair Darling, Her Majesty’s Treasury, Northern Rock plc

Timeline Tags: Global Economic Crises

Sir Richard Branson’s Virgin Group submits a bid to take over the ailing British mortgage giant Northern Rock. Another bid is submitted by the bank’s own board of directors. These are the only two bids submitted by the deadline, as all the other potential buyers have already dropped out. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] Under the terms of its rescue plan, Virgin would inject £1.25 billion (about $2.5 billion) into the bank and take a stake of 55 percent in it. The bank would be rebranded as Virgin Money. Northern Rock’s managers say their proposal—which gained shareholder backing—includes raising at least £500 million (about $1 billion), reducing the assets on the bank’s balance sheet, and reorganizing its operations. The managers criticize Virgin’s bid over the job cuts it entails, although Virgin says they are needed in order to rapidly repay the government money propping the bank up. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Virgin Group Ltd

Timeline Tags: Global Economic Crises

The British Office for National Statistics decides that £100 billion (about $200 billion) of debt owed by ailing mortgage giant Northern Rock will appear on government accounts, because of the government’s bailout of the bank. The move means the government may be at risk of breaking its rule to keep net debt below 40 percent of national income. The office stresses that the statistical change to public status should not be confused with nationalization, although the bank will actually be nationalized within days. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008]

Entity Tags: Office for National Statistics, Northern Rock plc

Timeline Tags: Global Economic Crises

The British Treasury says that it does not like either of two bids recently submitted for stricken lender Northern Rock (see February 4, 2008). The bank is being propped up by government loans and could be sold to a private buyer so that the government can get its money back. However, the Treasury is not satisfied with the bids and sees nationalization as a better outcome for the taxpayer. One of the consortia, led by Sir Richard Branson’s Virgin Group, is told that it is the front-runner to take control of the bank. The Treasury urges both Virgin and its rival bidder to offer more. [BBC, 8/5/2008]

Entity Tags: Virgin Group Ltd, Her Majesty’s Treasury, Northern Rock plc

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling rejects two bids to keep troubled lender Northern Rock in private hands and says the bank will be nationalized. Darling says that both bids would require a “very significant implicit subsidy” from the taxpayer, so the bank is to be placed into a “temporary period of public ownership.” Ron Sandler, a banking executive sounded out by the government in advance (see January 12, 2008), is placed in charge of the now state-owned bank. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] Shares in Northern Rock are suspended from trading the next day. Darling says the nationalized bank will operate “at arm’s length” from the government. Prime Minister Gordon Brown says the decision to nationalize is “the right move at the right time” and is one which “protects savers” and is in “the best interests of taxpayers.” Conservative Party shadow chancellor George Osborne tells MPs that Darling “is a dead man walking” and Conservative leader David Cameron demands Darling be fired over his handling of the nationalization. Sandler says it will take years for the bank to pay back its loans from the taxpayer, but declines to comment on potential job losses. [BBC, 8/5/2008]

Entity Tags: George Osborne, David Cameron, Ron Sandler, Her Majesty’s Treasury, Gordon Brown, Alistair Darling, Northern Rock plc

Timeline Tags: Global Economic Crises

State-owned British bank Northern Rock announces bigger-than-expected losses of £585.4 million (about $1.170 billion) for the first six months of the year. Much of the loss comes from the charges it takes to cover losses from struggling mortgage borrowers. However, it also managed to repay £9.4 billion (about $18.8 billion) of the emergency loan it had accepted from the Bank of England, reducing the amount owed to £17.5 billion (about $35 billion). The British government announces it will inject £3 billion (about $6 billion) to help the bank. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc

Timeline Tags: Global Economic Crises

Journalist Daphne Eviatar writes that during the eight years of the Bush presidency, prosecutions and enforcement of the 1994 Freedom of Access to Clinic Entrances Act (FACE—see May 1994) “cratered,” with Justice Department officials refusing to prosecute or sometimes even investigate complaints of vandalism, harassment, and assault. After the recent murder of abortion provider Dr. George Tiller (see May 31, 2009), Eviatar and the Washington Independent obtained government data showing that enforcement of the FACE law, and other federal laws designed to protect abortion providers and clinics, declined by 75 percent during the Bush presidency. Between 1994 and 1999, when President Clinton was in office, the Justice Department filed 17 complaints under the FACE Act. Between 2001 and 2009, when President Bush was in office, the Justice Department only filed a single case. Tiller’s own clinic was vandalized numerous times, but complaints against the actions were ignored by the department. Statistics provided by the National Abortion Federation (NAF) show that over 3,200 acts of violence against abortion providers in the US and Canada were committed between 2000 and 2008, and the organization says the number of actual incidents was probably “much higher.” The number does not include threats, vandalism, and harassment. NAF statistics show that at least 17 cases of “extreme” violence against abortion providers in the US were reported, including arson, stabbings, bombings, and fake anthrax mailings. But the Bush Justice Department only prosecuted 11 individuals for these attacks. The two highest-profile anti-abortion prosecutions were those of anthrax mailer Clayton Waagner (see 1997-December 2001) and bomber Eric Rudolph (see April 14, 2005). However, none of Waagner’s or Rudolph’s associates in the extremist organization Army of God (see 1982) were ever prosecuted as accessories to the two activists’ crimes. Neither was the Army of God ever investigated as a potential domestic terrorist organization (see Early 1980s). [Washington Independent, 6/12/2009]

Entity Tags: National Abortion Federation, Bush administration (43), Clayton Waagner, Clinton administration, Daphne Eviatar, Eric Robert Rudolph, US Department of Justice, George Tiller, Freedom of Access to Clinic Entrances Act

Timeline Tags: US Domestic Terrorism

The jobless rate in Britain climbs to its highest level since 1995, according to the Office of National Statistics in London. The number of people out of work hits 2.47 million, while unemployment claims rise to 1.61 million for the month of July. Data recently released by the statistics office indicate that unemployment through July rose to 7.9 percent, the most since 1996, compared to the European Union’s latest figure of 9.5 percent, 9.7 percent in the US, and 5.7 percent in Japan. Bank of England Governor Mervyn King says that even after the economy stops shrinking, households will continue feeling the recession’s pain, since “unemployment is either going to continue rising or remain high.” As much as £175 billion ($288 billion) is being printed to aid economic growth and avoid deflation. “If anything, the UK economy is only just emerging from recession, and this is a lagging indicator,” says economist Philip Shaw of London’s Investec Securities. “We’re looking at unemployment peaking towards the middle of next year. Things are likely to improve at a slow rate, but it’s likely to remain uncomfortable for a long time.” Employment minister Jim Knight tells BBC News: “Unemployment still remains a real problem for families up and down the country. We’ve got to keep the support going and not be tempted to celebrate the recovery.” In speaking on the recovery, Prime Minister Gordon Brown—up for re-election in 2010—says the economic rebound “is still fragile” and stimulus programs that boost the economy should be maintained. “There are no signs of recovery here,” Trades Union Congress General Secretary Brendan Barber says. “It might look rosier in city dealing rooms but, out in the real world, unemployment is the number one issue.” [Bloomberg, 9/16/2009]

Entity Tags: Investec Securities, Bank of England, Brendan Barber, European Union, Gordon Brown, United Kingdom, Office for National Statistics, Mervyn King, Jim Knight

Timeline Tags: Global Economic Crises

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